N.J. Admin. Code tit. 3, § 1-16.10(b) requires the following:
“Before accepting any loan application, the broker shall make written disclosure to the borrower in a separate service agreement setting forth:
1. The amount of the broker’s application fee, if any;
2. Whether and under what circumstances all or any part of the broker’s application fee may be refundable;
3. The amount of any discount points which are payable to the broker for its services;
4. A statement advising of [the fact that a broker cannot execute a lock-in agreement or issue a commitment either on its or a lender’s behalf];
5. A detailed listing of the specific services that will be provided or performed by the broker, together with a statement that all fees which are payable to the broker will be refunded if the broker does not perform the services indicated; and
6. Whether the broker places loans exclusively with any three or fewer lenders and, if so, the name(s) of such lender(s).”
This broker agreement must also be acknowledged in writing by the borrower (see Ibid. § 1-16.10[e]).
Due to the fact that this document must be provided before a broker accepts any loan application, we have not been providing it as a generic disclosure, since our very first document package (Initial Disclosures) would be provided at, rather than before, loan application.
Nevertheless, due to client requests, we will be providing an “upon request” version of this agreement (Cx17071) which, once requested, will print in Initial Disclosure packages when “Lender is a Broker” equals “Yes.”
This document is now available upon request.
August 14, 2013